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New Mexico | one of the megas recently closed down their 25,000 f-f deal here in the Panhandle.
Barrow / Gilt harvest has actually been up 150,000 to 200,000 weekly now ( compared to 08 ) for the past couple months.
Sow / boar harvest numbers actually have been running about the same as 08.
I think alot of outfits are simple letting the sows run their course and not replacing.
It's kind of a cut throat business....seems like these folks just do not fathom how to make real money.
They tend to operate soley as if all their profits come from squeezing everyone supposedly below ( or around ) them.
The afore pretty much indicates the common hog production business model is fatally flawed. What evryone is learning is that supposed economies of scale are a general LIE.
Expect a 40% reduction in the hog breeding herd within 8 months.
The big 10 megas in this bus are all gonna supposedly out last each other, thus gain total market share in a total market which is not profitable.
Money for these big dogs is costing em 10% + now, and there's no one that can borrow enough dough to bail the 1st Mega that files.
Never have figured out why a processing co which makes a pretty steady and sustainable 20 per head margin processing, almost always eventually get into major production schemes which over history have tended to lose $40 per head.
Just do not understand how corps think I guess.
It's said that these empty hog facilities do make a pretty good conversion to fish farms.
Some folks have converted em and are doing well at that.
They all say they'll never raise hogs again. | |
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hog farms liquidating in ur areas??
